The Business of Beauty

You know beauty, but do you know your business? As a beauty professional, you recognize firsthand that running a successful business involves so much more than doing the work you love. Yes, you can slay a hairstyle or beat a face with the best of them, but that’s just the beginning. From continuing your education, to marketing your services, to making your money, understanding the business of beauty is how you create a company that lasts. If you’re ready to grow as a beauty professional and access everything this industry has to offer, here’s how you can master the business. 

Know Your Numbers

One of, if not the most important, parts of your beauty business are the numbers. And we’re not just talking about how much money you make. In order to survive and thrive as a beauty professional you have to know exactly what’s coming in, what’s going out, and what you need to prepare for. Think about your expenses like your booth rent, costs for styling products and tools, classes you want to take, and for marketing. You also need to know things like how to price your services and how many customers you need to serve to break even. When you’re clear on your numbers, you can be strategic about how you spend your money in order to reach your goals. Some questions to ask yourself might be:

• What are my profit margins? Figure out how much you’re really making after calculating all of your expenses. You might be surprised to find out it’s much more (or less) than you thought. 
• Am I ready for tax season? Whether you’re a beauty professional working as a sole proprietor or an established business, you need to plan and prepare for taxes. Set up a business bank account and make taxes one of your expenses so you’re ready. 
• How much do I want to make? Of course, we’re all about growth and increasing revenue, but that means something different for everyone. Knowing your financial goals will help you determine where and how to spend, save, and invest your money. 

Understand the Market

No matter how long you’ve been in business, it’s essential to keep an eye on what’s happening in the market. The beauty industry is ever evolving and changing, and staying ahead of the curve is one of the best ways to make sure your business evolves as well. Decades ago, we could rely on partnerships with salespeople to keep our shelves packed with other brands as a lucrative revenue stream, but today the margins are much slimmer. There was a time when securing a booth at a national hair or beauty show like Bronner Bros. was the ultimate marketing goal, but if your customers spend their time online, you need to think about spending your budget on social media. While good service will create loyal clients and a steady stream of income, understanding the business and market is how you grow. 

Develop Your Brand

There are over 1.2 million beauty professionals today and that number is only going to continue to grow. Part of your business as a beauty professional is creating a solid and identifiable brand around who you are and what you do. Think about what you really want to represent and be clear about pushing that message through every area of your business. Are you the stylist providing the luxury experience? That has to come across in your social media, how you treat customers when they book you, and even their experiences after they leave your chair or salon. 

Be Innovative

Behind the business of beauty is innovation. In order to experience real growth and have the possibility to build something beyond yourself, something your community can be proud of, and something you can pass down to your children, you must innovate. You must think of ways beyond the service that can help your business expand. We believe that creating products is one of the best ways to do this, but it isn’t the only way. Think about your goals and interests to create innovative opportunities to grow your business. 

Build a better beauty business with Ryze. We’re here to provide the education, resources, and tools to help you grow. Ready to get started? Learn about our sample kits and private label program to expand your brand.